Reuters: Bankruptcy News: UPDATE 1-Eircom examiner rejects offer, unveils $3.8 bln loss

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UPDATE 1-Eircom examiner rejects offer, unveils $3.8 bln loss Apr 30th 2012, 17:39 DUBLIN, April 30 | Mon Apr 30, 2012 1:39pm EDT DUBLIN, April 30 (Reuters) - The examiner for Eircom said on Monday he had rejected an offer for Ireland's former state telecom operator from an unspecified party, and also announced an operating loss of 2.86 billion euros ($3.8 billion) for the year to June 2011. Eircom was granted court protection from creditors at the end of March to allow it to restructure 3.75 billion euros ($5 billion) debt. Irish examinership is a process akin to Chapter 11 bankruptcy protection in the United States and administration in Britain, allowing a company to continue operating as a going concern. Eircom examiner, Michael McAteer from insolvency specialist Grant Thornton, said the decision not to proceed with the conditional non-binding offer was unanimously supported by senior lenders, which are likely to take control of the company. Statutory accounts for Eircom Ltd, showed it has recognised a new provision of 2.5 billion euros debt related to loan guarantees for the Eircom group. This, and a non-cash impairment of 370 million euros relating to its Meteor Mobile business, lead to an operating loss of 2.86 billion for the year to June 2011. The accounts also showed a pension deficit of 253 million euros at end-2011 due to volatility in financial markets and the market values of pension scheme assets. ($1 = 0.7555 euro) (Reporting by Lorraine Turner; Editing by Dan Lalor) Link this Share this Digg this Email Reprints

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